I believe it is fitting to pause to celebrate milestones during the course of a great undertaking. I can think of no better moment than the 40th anniversary of Black Enterprise to reflect and to appreciate the challenges met and triumphs achieved in the unwavering pursuit of our admittedly ambitious mission:Â To educate and empower African Americans to become full participants in wealth creation within the global economy. Over the past four years that I have been CEO, I have built on my father’s original vision, making it relevant for future generations.
Black Enterprise is now on the cutting edge of technology, delivering content and services in any form accessible to our audience. Just in the past decade, we have grown from a single-publication entity to an expansive multimedia enterprise. Today, our audience can gain our valuable, proprietary information through this magazine; on our two television shows, Our World with Black Enterprise and Black Enterprise Business Report; at our three events, Black Enterprise Entrepreneurs Conference + Expo, Women of Power Summit, and Black Enterprise/Pepsi Golf & Tennis Challenge; and on the redesigned, turbocharged BlackEnterprise.com.
In this anniversary month, we have decided to make Black Enterprise available on a fifth platform: the iPad. Virtually every division of our company–from Editorial and Interactive to Sales and Marketing–came together for the development of our iPad app. With the tap of a finger, you will receive additional resources, real-time stock quotes, slideshows, and related videos. Our iPad edition will provide you with yet another engaging, accessible experience from Black Enterprise and the option to customize issues by subject matter, areas of interest, and priorities. Besides being what I consider the ultimate in customer service for our audience, I just think it’s very cool. Stay tuned for future mobile apps that will enable you to access our information in an even more dynamic and interactive fashion and make black enterprise a seamless part of your life.
This is also a time for renewal. Nostalgia has its place but, true to our tradition, we must forge ahead, conquering the seemingly insurmountable and achieving what others would deem unimaginable. In short, our mission is just beginning. While African Americans have, in general, narrowed the income gap and a select few have gained some of the most powerful positions on the planet–including the presidency of the United States–the wealth divide is not only Grand Canyon-wide but it is expanding. Take a look at recent statistics: According to the Center for American Progress, a Washington, D.C., think tank, minority households retain 16 cents in wealth for every $1 held by a white household.
Moreover, among individuals earning annual salaries of more than $75,000, African Americans held assets valued at only $18,300 while their white
counterparts had assets of $238,400, according to a study by Brandeis University’s Institute on Assets and Social Policy. Homeownership was not a factor in the survey, which defined net worth as assets such as cash, stocks, and bonds minus liabilities such as student loans, credit card debt, and car loans. But, despite our growth in homeownership over the past four decades, African Americans still lag behind whites in that area. U.S. Census Bureau research indicates that as of the fourth quarter of 2009, 74.5% of whites owned homes compared with 46% of African Americans.Against this backdrop, Black Enterprise will be even more vigilant in providing you the information and services necessary to grow your business, advance in your career, or boost your investment portfolio. To that end, I laid out major tenets that will carry us forward over the next 40 years.
First, multigenerational wealth-building must remain our top priority. The Brandeis study revealed that about 25% of white families inherit money and that they receive, on average, $10,000; on the other hand, less than 8% of black families gained an inheritance, and the average sum was $900. We must commit to passing down wealth to the next generation. For years, I have said that we have to move beyond merely earning money to accumulating wealth through homeownership, saving, and investing. We should use compound interest to our advantage and wisely place our money in vehicles such as stocks, bonds, and mutual funds which, over time, will greatly appreciate in value and increase our net worth.
Given the recent economic downturn, it is vital that all of us become more strategic and tenacious in maximizing our dollars. That’s why a year ago I directed our editors to totally revamp our decade-long financial literacy and empowerment program, renaming it “Wealth for Life.†In fact, this year we made it the tagline that drives everything we do at our company. We have designed principles and action plans to enable you to reach your financial goals, regardless of your life stage, income status, or occupation. As a result, we’ll be able to pass on real wealth to our children so they can attend the best schools, develop viable businesses, and strengthen our institutions.
Next, we must nurture the next generation. I wholeheartedly believe that it’s critical to embrace new blood, cultivate their talents, and provide them with opportunities to perform at the highest level. That’s why we introduced BE Next–emerging business leaders ages 21 to 35. In fact, roughly 40% of Black Enterprise employees are represented in this generation. Moreover, my children, Erika and Kristin, 19 (who were taking college exams and not available for the photo), Earl III “Gibby,†18, and Teddy, 15, serve as my own in-house
focus group on how young people communicate, live, and spend money as well as what they aspire to achieve. I have been told by each of them that they would rather text me than talk to me– they can’t be bothered!It is the mission for entrepreneurs and executives of my generation to offer support and guidance to these rising stars in the same manner that my father’s generation mentored us. It will be our way of maintaining forward momentum related to African American participation in global business. And there are boundless reciprocal benefits: BE Nexters gain valuable insight and capital to pursue new ventures, while those who comprise the “BE Now†set acquire fresh perspectives and technological innovation. I fully expect to see those on our 40 Next list on future rosters of the be 100s and Most Powerful Executives in Corporate America.
As I’ve stated before, the past is a reference tool to help us avoid land mines and to place plans in historical context. I always follow the philosophy that “past performance is not necessarily indicative of future results.†We must move forward, fully committed to charting unexplored territory, facing new, daunting challenges, and making even greater strides in decades to come. As each of you seeks to achieve individual and collective goals, let black enterprise serve as your guide to a brighter future.